The drubbing Carl Icahn took last week may just have beaten the stuffing out of him. The raider “hinted” that he might not press forward with his campaign to get Yahoo’s board fired, Reuters says.
In his first comments since the end of Microsoft-Yahoo talks nuked Yahoo’s stock (and Icahn’s stake), Carl tells Reuters that he thinks the Google search deal Yahoo signed “might have some merit” and is “better than the alternative deal proposed by Microsoft”:
“While the Google deal is not the same as an offer of $34.375 per share for Yahoo, I am continuing to study it, and it might have some merit,” Icahn told Reuters in his first public comments since Yahoo disclosed the Google ad-sharing deal on Thursday.
Why is this important? Because:
The pact comes with extensive “change of control” provisions that allow Google or Yahoo to terminate the deal in the event that Yahoo is acquired or if a majority of its board is replaced at its upcoming annual shareholders meeting in August.”
Icahn hinted that the change of control provision might be sufficient reason to pull back on his campaign to replace the Yahoo board. Alternatively, Icahn could accept minority board representation which may not prompt Google to walk away.
Here’s another reason for Icahn to walk away: He has already lost. Carl never had a real plan for Yahoo other than selling it to Microsoft, and at least in the near term, that plan is toast.